Secondary Industry

The secondary industry uses the raw materials extracted in the primary sector and then converts them into the finished product. Therefore, the secondary industry consists of construction and manufacturing industries. The products manufactured under secondary industries are either consumed by the end customer or used as raw material by other industries for further processing or production. For example, getting wood from forests is a primary industry; however, making furniture from wood is a secondary industry. The businesses under secondary industry usually use massive machinery in their production plants for manufacturing goods and even use human resources for packaging and distribution of goods to retailers, wholesalers, etc., at different locations. 

Secondary industry is further divided into two categories: Manufacturing and Construction Industry.

1. Manufacturing Industry

These are the industries that are involved in the process of converting raw materials or semi-finished products into finished products. Manufacturing industries create form utility as it changes the form of raw materials into finished goods. For example, cotton is a raw material that is converted in clothes under the manufacturing industry, iron is converted into benches, sugarcane into sugar, wheat into bread, etc. 

The two types of goods produced in the manufacturing industry are:

• Consumer Goods: Consumer goods are goods that are consumed directly by the end consumer and are used for day-to-day consumption. Examples of consumer goods are clothes, hand wash, soap, oil, ghee, bread, butter, etc. 
• Industrial Goods: Industrial goods are the goods that are built or produced for manufacturing consumer goods. For example, machines, equipment, etc., are used by industries to manufacture consumer goods such as bread, butter, soap, oil, etc.

The manufacturing industry is further divided into four categories:

1. Analytical Industry: The industry in which a basic raw material is broken down into several parts for manufacturing multiple products is known as analytical industry. For example, different products like gasoline, kerosene oil, diesel, petroleum, etc., are formed by breaking crude oil into different parts and processing them separately. 
2. Synthetic Industry: The industry in which manufacturers mix two or more materials for manufacturing a new product is known as the synthetic industry. For example, products like paint, paper, soap, cement, sanitizers, etc., are manufactured by mixing two or more than two materials.  
3. Processing Industry: The industry in which manufacturers process a raw material through different production stages and then manufacture the finished good is known as the processing industry. For example, the Sugar industry processes sugarcane through different stages to manufacture sugar for consumers and other industries. 
4. Assembling Industry: The industry in which the organizations take different finished products and combine them to form a new finished product is known as the assembling industry. For example, computer companies buy different finished products like CPU, motherboard, software, etc., from different companies and produce a new product. 

2. Construction Industry

These are the industries that are involved with the construction of roads, dams, buildings, etc., for the development of an economy. The construction industry use products of the manufacturing industry, such as steel, iron, cement, etc. The products of construction industries are unique in a way that their products cannot be moved or transferred from one place to another. For example, a dam can be built at a fixed place and cannot be moved as per the choice of anyone. 

The industry is concerned with the processing and production of goods and services with the motive of earning profit. In simple words, it involves changing the raw materials into finished products for the purpose of selling them to the customers. The goods sold by industry can be either used by other companies for further production or can be used by the end consumers for final consumption. The goods produced in the former case are known as producer goods. For example, machinery, tools, etc. However, the goods produced in the latter case are known as consumer goods. For example, bread, milk, butter, cloth, groceries, medicines, etc. An organization can also produce materials that can be used by other companies to further process and convert them into finished goods. These goods are known as intermediate goods. For example, rubber, copper, plastic, etc. Industry can be further classified into three parts: primary, secondary, and tertiary industry.